Since the Note Holder indicated that they had already received an offer to purchase a large pool of their holdings, Rhenium focuses on finding local investors, or national investors with a presence in North Jersey who would pay a premium on the asset.  Rhenium utilized a “wholetaling” strategy to market the asset, indicating that investors may purchase the asset in a larger pool, or one-off.  This encouraged multiple small-cap investors that would not have been able to carve the asset out to submit bids at a premium to the larger investment groups making offers on the greater pool.

The subject asset enjoyed moderate demand due to the density of the Paterson market, however many of the owner operators did not understand the note purchase process, and the lack of data on the possibility of environmental contamination was also a major concern.  Rhenium applied stringent controls to the screening process to ensure that offers were only considered from qualified buyers.  Ultimately, pricing from Rhenium’s investors beat the wholesale purchasers, and the Note Holder carved out the subject asset and sold it to a national investor with interests in the Northeast.